Table of Contents
Introduction
-
- Definition
- Abbreviations
Executive Summary
-
- The market
-
- Figure 1: Forecast of UK value sales of dark spirits and liqueurs, 2009-19
- Figure 2: Forecast of UK volume sales of dark spirits and liqueurs, 2009-19
- Market factors
- Overall alcohol consumption fell again in 2013
- The removal of the tax escalator is expected to result in moderate increases in alcohol consumed
- Rising consumer confidence is expected to benefit premium dark spirits and liqueurs
- Changing populations brings good and bad news
- Companies, brands and innovation
-
- Figure 3: Value sales of top-selling brands in the off-trade, 2013/14*
- Age statements and flavour variants are key features of the innovation landscape
- Advertising spend returned to 2011 levels in 2013 following a drop in 2012
- The consumer
-
- Figure 4: Usage of dark spirits and liqueurs, June 2014
- Recommendation is the most potent driver of choice
-
- Figure 5: Reasons for choosing one dark spirit/liqueur over another, June 2014
- Perceived lack of refreshment remains a challenge for dark spirits
-
- Figure 6: Attitudes towards dark spirits and liqueurs, June 2014
- Interest in making cocktails from scratch at home is significant
-
- Figure 7: Further attitudes towards dark spirits and liqueurs, June 2014
- Blended whisky faces a challenge to prevent further loss of share
-
- Figure 8: Qualities associated with blended Scotch whisky, single malt whisky and other whisky or bourbon, June 2014
- What we think
Issues in the Market
-
- Premium sipping rums offer further scope to grow the rum category
- The facts
- The implications
- Flavoured dark spirits and liqueurs continue to be a focus of NPD
- The facts
- The implications
- While whisky brands opt for no age statements, rum embraces aged expressions
- The facts
- The implications
Trend Application
-
- Guiding Choice
- Collective Intelligence
- Many Mes
Market Drivers
-
- Key points
- The number of 18-24s in the UK is in decline
-
- Figure 9: Trends in the age structure of the UK population, 2009-14 and 2014-19
- Rising consumer confidence is expected to benefit premium dark spirits and liqueurs
-
- Figure 10: Consumers’ financial health index, January 2009-June 2014
- Overall alcohol consumption fell in 2013, but is expected to rise
-
- Figure 11: Trends in UK per capita consumption of 100% alcohol, 2009-13
-
- Figure 12: HM Treasury estimated changes in volume consumption of alcohol over 2014/15-2018/19 following changes to alcohol duty in Budget 2014, April 2014
- Declining whisky stocks may lead to further no-age-statement introductions
Strengths and Weaknesses
-
- Strengths
- Weaknesses
Who’s Innovating?
-
- Key points
- No-age-statement whiskies are a feature of recent NPD activity
- Operators look to different casks for a more varied flavour profile
- Scotch brands launch ‘spirit drinks’ to tap into interest in flavours
- Cinnamon-flavoured varieties are increasing in number
- Hybrid spirits offer opportunities to attract new users
- Brands take different approaches to customisation and personalisation
Market Size and Segment Performance
-
- Key points
- Dark spirits and liqueurs market set to surpass £5.6 billion by 2019
-
- Figure 13: UK value and volume sales of dark spirits and liqueurs, at current and constant prices, 2009-19
- Figure 14: Forecast of UK value sales of dark spirits and liqueurs, 2009-19
-
- Figure 15: Forecast of UK volume sales of dark spirits and liqueurs, 2009-19
- Forecast methodology
- Segment performance: Whisky/Whiskey
-
- Figure 16: UK value and volume sales of whisky/whiskey, at current and constant prices, 2009-19
- Figure 17: Forecast of UK value sales of whisky/whiskey, 2009-19
- Segment performance: Brandy/Cognac/Armagnac
-
- Figure 18: UK value and volume sales of brandy/Cognac/Armagnac, at current and constant prices, 2009-19
- Figure 19: Forecast of UK value sales of brandy/Cognac/Armagnac, 2009-19
- Segment Performance: Dark/Golden/Spiced Rum
-
- Figure 20: UK value and volume sales of dark/golden/spiced rum, at current and constant prices, 2009-19
- Figure 21: Forecast of UK value sales of dark/golden/spiced rum, 2009-19
- Segment Performance: Liqueurs
-
- Figure 22: UK value and volume sales of liqueurs, at current and constant prices, 2009-19
- Figure 23: Forecast of UK value sales of liqueurs, 2009-19
- The on-trade still accounts for 55% of value sales
-
- Figure 24: UK value and volume sales of dark spirits and liqueurs in the on- and off-trade, 2012-14
Market Share
-
- Key points
- The Famous Grouse retains its lead in whisky
-
- Figure 25: Value sales of top-selling whisky brands in the off-trade, 2012/13 and 2013/14
-
- Figure 26: Retail prices of selected whiskies, per 70cl bottle, October 2014
- Figure 27: Market share of whisky producers in the off-trade, 2013/14 (52 w/e 24 May 2014)
- Little advertising investment by brandy brands sees own-label dominate
-
- Figure 28: Value sales of top-selling brandy/Cognac/Armagnac brands in the off-trade, 2012/13 and 2013/14
-
- Figure 29: Retail prices of selected brandy/Cognac, per 70cl bottle, October 2014
- Figure 30: Market share of brandy/Cognac/Armagnac in the off-trade, 2013/14 (52 w/e 24 May 2014)
- Dark rum’s impressive performance continues
-
- Figure 31: Value sales of top-selling rum brands in the off-trade, 2012/13 and 2013/14
-
- Figure 32: Retail prices of selected dark/golden/spiced rum, per 70cl bottle, October 2014
- Figure 33: Market share of dark/golden/spiced rum producers in the off-trade, 2013/14 (w/e 24 May 2014)
- Non-cream liqueur brands driving growth
-
- Figure 34: Value sales for top-selling liqueur brands in the off-trade, 2012/13 and 2013/14
-
- Figure 35: Retail prices of selected liqueurs, per 70cl bottle, October 2014
- Figure 36: Market share of liqueur producers in the off-trade, 2013/14 (52 w/e 24 May 2014)
Companies and Products
-
- Bacardi Brown-Forman Brands (BBFB)
- Company overview
- Product Range
- Product innovation
- Recent activity and promotion
- Diageo
- Company overview
- Product Range
- Product innovation
- Recent activity and promotion
- William Grant & Sons Distillers
- Company overview
- Product Range
- Product innovation
- Recent activity and promotion
- LVMH
- Company Overview
- Product Range
- Recent Activity
- Maxxium
- Company Overview
- Product Range
- Product innovation
- Recent activity and promotion
- Pernod Ricard
- Company Overview
- Product Range
- Recent Activity
Brand Advertising and Perceptions
-
- Key points
- Total adspend returned to 2011 levels following a drop of 6% in 2012
-
- Figure 37: Adspend for dark spirits and liqueurs, by category, 2011-14
- Liqueurs and whisky continue to receive the most advertising support
- Jack Daniel’s remains top spender in whisky/whiskey
- Southern Comfort and Jägermeister boost liqueurs
- Captain Morgan holds the fort for dark/golden/spiced rum
-
- Figure 38: Top 10 brands in the dark spirits and liqueurs category, by adspend, 2011-14
-
- Figure 39: Top 10 brands’ shares of adspend in the dark spirits and liqueurs category, 2011-14
Brand Research
-
- Brand map
-
- Figure 40: Attitudes towards and usage of brands in the dark spirits and liqueurs sector, August 2014
- Correspondence analysis
- Brand attitudes
-
- Figure 41: Attitudes, by dark spirits and liqueurs brand, August 2014
- Brand personality
-
- Figure 42: Dark spirits and liqueurs brand personality – macro image, August 2014
-
- Figure 43: Dark spirits and liqueurs brand personality – micro image, August 2014
- Brand experience
-
- Figure 44: Dark spirits and liqueurs brand usage, August 2014
-
- Figure 45: Satisfaction with various dark spirits and liqueurs brands, August 2014
-
- Figure 46: Consideration of dark spirits and liqueurs brands, August 2014
- Brand recommendation
-
- Figure 47: Recommendation of selected dark spirits and liqueurs brands, August 2014
The Consumer – Usage
-
- Key points
- Dark spirits and liqueurs are losing drinkers
-
- Figure 48: Usage of dark spirits and liqueurs, June 2014
- Whisky is succeeding in attracting younger drinkers
- Few whisky drinkers only drink single malt
- Usage of flavoured whisky among women remains low
The Consumer – Choice Factors
-
- Key points
- Recommendation is the most potent driver of choice
-
- Figure 49: Reasons for choosing one dark spirit/liqueur over another, June 2014
- Diageo and Bacardi amongst those pushing super-premium rums
- The pre-mixed drinks segment should look to craft beer and cider for cues
- New flavours continue to be a key choice factor
The Consumer – Attitudes towards Dark Spirits and Liqueurs
-
- Key points
- An image as less refreshing remains a challenge for dark spirits
-
- Figure 50: Attitudes towards dark spirits and liqueurs, June 2014
- Interest in mixers that suit the spirit
- Irish whiskey and Spanish brandy have room for growth
The Consumer – Further Attitudes towards Dark Spirits and Liqueurs
-
- Key points
- There is a gap in the market for a premium blended whisky
-
- Figure 51: Further attitudes towards dark spirits and liqueurs, June 2014
- Interest in making cocktails at home is high
- Jägermeister’s position as a shot is under threat
The Consumer – Qualities Associated with Dark Spirits and Liqueurs
-
- Key points
- Blended whisky faces a challenge to prevent further loss of share
-
- Figure 52: Qualities associated with blended Scotch whisky, single malt whisky and other whisky or bourbon, June 2014
- Blended whisky begins to embrace mixability and the ‘spirit drink’
- Brands seek to address single malt’s lack of approachability
Appendix – Market Size and Segment Performance
-
-
- Figure 53: Best and worst case forecasts for the dark spirits and liqueurs market, by value, 2014-19
- Figure 54: Best and worst case forecasts for the dark spirits and liqueurs market, by volume, 2014-19
- Figure 55: Best and worst case forecasts for the whisky/whiskey market, by value, 2014-19
- Figure 56: Best and worst case forecasts for the whisky/whiskey market, by volume, 2014-19
-
- Figure 57: Best and worst case forecasts for the brandy/Cognac/Armagnac market, by value, 2014-19
- Figure 58: Best and worst case forecasts for the brandy/Cognac/Armagnac market, by volume, 2014-19
- Figure 59: Best and worst case forecasts for the dark/golden/spiced rum market, by value, 2014-19
- Figure 60: Best and worst case forecasts for the dark/golden/spiced rum market, by volume, 2014-19
-
- Figure 61: Best and worst case forecasts for the liqueurs market, by value, 2014-19
- Figure 62: Best and worst case forecasts for the liqueurs market, by volume, 2014-19
-
Back to top